I take it this is a load of old rubbish ?

max2009

So good was the rumour that she posted it numerous times.

affordmylife

the thing is tho if you are not on any benefits like tax credit or something then it would be of huge benefit not to be taxed up to £10,000.

i dont qualify for any benefits and earn around £10,000 so i would love not to pay any tax.

my husbands works so we dont get anything at all.

fairydiamond

Sounds nice, lol. I think I had heard about it, but is it going to happen? Doubt it.

A_Nice_Englishman

Consider a single person with no children £10,000 a year.

They would pay income tax of (10000 -6475) x 20% = £705

According to http://www.taxcredits.inlandrevenue.gov.uk/Qualify/DIQHousehold.aspx they would get tax credits of £1240.59

So in effect the taxman pays them about £535

Oldernotwiser

A_Nice_Englishman wrote: »

Consider a single person with no children £10,000 a year.

A single person over the age of 25.

Tinkerbelle1

max2009 wrote: »

So good was the rumour that she posted it numerous times.

Yes, as I didn't know if this was the right place to post it. It was posted here and in the tax board.
So what exactly do you mean?

LittleVoice

Tinkerbelle1 wrote: »

Ok I may sound silly, but how does this personal allowance work? Is it for example if you earn £10,000 do you earn the £6475 tax free and are then taxed on the remaining £3525 ? Or are you taxed on the full £10,000 and only tax free if you earn below the £6475 ?

Yes, that is the way it is done - BUT, just in case you were wondering - it doesn't mean that you don't pay any tax until you have earned the £6475 in the year and then pay tax at whatever point in the year your earnings reach £6476. That £6475 is divided into equal amounts (weekly or monthly, depending on how frequently you are paid) and so, if you earned more than that, you would pay tax on the extra every week or month.

A_Nice_Englishman

Oldernotwiser wrote: »

A single person over the age of 25.

Correct, I was oversimplifying it a bit. I think they have to be working over 30 hours a week too?

bigheadxx

Tinkerbelle1 wrote: »

There is a rumour going around that part-time workers or infact anyone in the UK earning less then £10,000 will not pay tax, this could be announced in the 2009 budget.

This sounds like rubbish to me, has anyone else heard this?

It would have been better to have done this ten years ago rather than introducing the Tax Credits system which is hugely bureaucratic, expensive to administer and is nothing whatsoever to do with "tax crediting" but is effectively a benefit, ensuring that millions of people are dependant on the government for part of their income.

csm_2

Yes I have heard this rumour in the newspaper a couple of weeks ago too I dunno if this is true though. Itd b nice if it is true more money in everybodys pockets